JANCO noted that SIRI converted $30 million of 2009 debt at $0.45 per share, inconsistent with comments by CEO Mel Karmazin that he was confident that he will be able to refinance the $1 billion of debt due in 2009. The firm commented, "SIRI historically has stated that they did not want to dilute the existing shareholders with an equity raise. In addition, we were of the understanding that SIRI was going to wait to disclose third quarter results as well as possibly fourth quarter subscriber additions before they actually went to the debt markets. We thought if the results showed progress, it maybe a more opportunistic time to raise the debt. We have to admit that SIRI's recent moves have surprised us, especially before the third quarter earnings release, and not necessarily consistent with previous statements."

JANCO also notes that SIRI's preliminary proxy sounds alarms of dilution and a reverse stock split. The firm said historically, reverse splits have caused overall declines in value.

JANCO also said there is still the possibility of another capital raise in 2009.

JANCO noted that SIRI converted $30 million of 2009 debt at $0.45 per share, inconsistent with comments by CEO Mel Karmazin that he was confident that he will be able to refinance the $1 billion of debt due in 2009. The firm commented, "SIRI historically has stated that they did not want to dilute the existing shareholders with an equity raise. In addition, we were of the understanding that SIRI was going to wait to disclose third quarter results as well as possibly fourth quarter subscriber additions before they actually went to the debt markets. We thought if the results showed progress, it maybe a more opportunistic time to raise the debt. We have to admit that SIRI's recent moves have surprised us, especially before the third quarter earnings release, and not necessarily consistent with previous statements."

JANCO also notes that SIRI's preliminary proxy sounds alarms of dilution and a reverse stock split. The firm said historically, reverse splits have caused overall declines in value.

JANCO also said there is still the possibility of another capital raise in 2009.